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BenefitsLink Retirement Plans Newsletter

August 21, 2013          Get Health & Welfare News  |  Advertise
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Employee Benefits Jobs

Webcasts and Conferences

Health Care Reform for Employers: Now What? - Pearl, MS
November 6, 2013 in MS
(Lorman Education Services)

Fall Seminar
September 10, 2013 in MO
(ASPPA Benefits Council of Greater Twin Cities)

Advanced Cross-Tested Plans: Adding More Tools - Boston
September 19, 2013 in MA
(SunGard Relius)

2013 Qualified Essentials Plus Series
September 18, 2013 WEBCAST
(McKay Hochman Co., Inc.)

401(k) Essentials Plus Series
September 26, 2013 WEBCAST
(McKay Hochman Co., Inc.)

Compliance Assistance Informational and Outreach Forum
August 27, 2013 in MA
(Employee Benefits Security Administration (EBSA), U.S. Department of Labor)

Is My Oregon Business Eligible for the Small Business Tax Credit under the ACA and What's the Procedure? -- Hangout
August 27, 2013 WEBCAST
(U.S. Small Business Administration (SBA))

The Latest in Compensation and Benefits Accounting - Q3 2013 -- Webcast
September 18, 2013 WEBCAST
(PricewaterhouseCoopers LLP)

View All Webcasts and Conferences

  LinkedIn   Twitter   Facebook Hand-picked links to the web's best news articles,
official guidance, jobs, webcasts and more.
[Guidance Overview]

IRS Retirement News for Employers, August 20, 2013 (PDF)
Articles include: Adjust your net earnings from self-employment to determine your plan contribution/deduction; Automatic contribution increases; Internal controls: Hardship distributions, and Why internal controls are critical; Why and how to use VCP to correct your plan errors; Information for employees: Consequences of taking a hardship distribution from your 401(k), and Consider this before borrowing from your 401(k). (Internal Revenue Service)  


New! ftwProposal Pro – The newest addition to the ftwilliam.com Product line!

Sponsored by ftwilliam.com

ftwProposal Pro helps illustrate the best plan options from data that is entered or populated from the plan document or administration software. Contact us about the auto-solve tool, customized reports, how to maximize benefits and more!

SEC Staff Examination Priorities: Are There Changes Ahead for Unregistered Retirement Plan Recordkeepers?
"The [SEC] staff recently has been focusing increasing attention on the various arrangements that mutual funds, and/ or their direct service provider (collectively, 'Fund Complexes') enter into in with third-parties to provide certain services to the Fund Complex related to shareholder servicing. While the SEC staff's interest is not focused solely on retirement plan recordkeepers ('Recordkeepers'), the SEC staff has indicated that they are concerned with, among other things, the nature of the services provided in these arrangements, and the nature and amount of the compensation paid for these services. In each of these points of emphasis, the SEC staff has, either explicitly or implicitly, called into question whether Recordkeepers that are not registered with the SEC in some capacity should be registered as either broker-dealers or transfer agents." (DrinkerBiddle via Mondaq; free registration required)  

DOL Secretary Backs Unions in California Pension Melee
"U.S. Secretary of Labor Thomas Perez and California officials are clashing over provisions in the state's 2012 public pension reform law. If state officials stand by the pension reform, California could lose more than $1.5 billion in federal funding for public transit this year alone." (Pensions & Investments)  

The Unintentional Procrastinator: The Plan Sponsor Whose Retirement Plan Services Are Unbundled
"Detailed employment data is crucial to correctly determining participant retirement benefits. In fact, an employee's entire employment history may be needed to determine their benefits. Without a professional service provider helping plan sponsors manage their participant data, it may not be current or easily accessible.... [P]lan sponsors in an unbundled environment commonly wait until the time of a participant's retirement to collect this information." (The Principal Blog)  

New York State Pension Fund Uses Obsolete Computer Technology
"The [New York] Department of Financial Services ... blasted the [New York] state pension fund for using obsolete technology and computer codes that date back to the 1950s to manage the retirement system. The antiquated equipment puts taxpayers and pensioners at 'significant risk,' officials said in the audit.... The audit revealed that the pension funds' information systems are no longer supported by their manufacturers and lack vital security patches. Additionally, pension fund officials admitted to the DFS auditors that the technology programs were 'approaching the point of failure'[.]" (New York Daily News)  


SWBA 2013 Executive Benefits Forum - Sept. 26 - Dallas, TX

Sponsored by SouthWest Benefits Association

The SWBA Executive Benefits Forum will be led by nationally recognized ERISA expert, Sal Tripodi, and will focus on advanced issues in participant loans, safe harbor 401(k) plans and the employee plans compliance resolution system.

Retire Early and Live Longer: The Causal Effect of Retirement on Mortality
"[The authors] find for men that early retirement, induced by [a] temporary decrease in the age of eligibility for retirement benefits [in the Netherlands], decreased the probability to die within five years by 2.5 percentage points." (Hans Bloemen, Stefan Hochguertel, Jochem Zweerink)  

Flexible Pension Take-Up in Social Security
"[The authors] consider a change from a payout scheme in which benefits start at the fixed statutory retirement age to a scheme where benefits start at the flexible effective retirement age. This flexible pension take-up is combined with actuarial adjustments of pension benefits for early or late retirement." (Yvonne Adema, Jan Bonenkamp, and A. C. Meijdam, via SSRN)  


Text of Comments by ICI to DOL on Proposed Dodd-Frank Amendments to PTE Class Exemptions (PDF)
"The proposed change to Section V(f)(2) of PTE 2006-16, from an objective standard based on credit ratings, to a standard based on a subjective credit-worthiness determination, will likely require a fiduciary to seek out the advice and counsel of third parties, leading to increased costs associated with complying with the conditions of PTE 2006-16.... [G]iven that the Department considered and appears to have relied upon amendments to two SEC rules that have been proposed (but not yet adopted) with respect to the proposed [change], we urge the Department to await issuance of final rules from the SEC prior to finalizing the proposed [change]." (Investment Company Institute [ICI])  


Annuityville Horror Stories
"The average annual fee on a load variable annuity (including riders) is typically around 3%. But with the 'oversight' fee added to the 3.9% policy charge, Hank's annual fees on the total asset amount was 5%, which adds up to a whopping $51,000 per year.... To surrender the policy in full would cost Hank over $80,000. Because of the high surrender charges, there is really nothing Hank can do except take out 10% of his money via the penalty free withdrawal clause, not the happiest of options. You can't make this kind of horror up." (MarketWatch)  


Retirement Education, Plan Documents, and more.

Sponsored by McKay Hochman

McKay Hochman provides a comprehensive retirement plan resource for financial institutions and TPAs. We offer plan documents, compliance support services, continuing education, online resource library, and more. Visit www.mhco.com for details.


How to Low-Ball a $4.4 Trillion Pension Hole
"Under rules passed by the Governmental Accounting Standards Board, governments will have to incorporate their unfunded pension and retiree obligations into their financial statements.... The effect probably will be to make the debt of states such as Illinois and New Jersey, which haven't adequately funded their pensions, look worse. But understanding how much money governments really need to put into their pensions -- and how much of a hit is coming to taxpayers -- will be as murky as ever." (Bloomberg)  

Press Releases

US Labor Department Sues Marlton, NJ, Beauty Salon to Restore Contributions to Employee Retirement Savings Plan
Employee Benefits Security Administration (EBSA), U.S. Department of Labor

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